Tag Archives: Trust

How Do You Balance Multiple Businesses? Eight Thoughts

Situation: A company has had one primary focus for the last few years. They are now developing another capability which takes significant attention from the CEO. How do you balance multiple foci, while maintaining a balance with family life? How do you balance multiple businesses?

Advice from the CEOs:

  • Find people you trust and delegate – ask them for help. Give them lots of leeway – just ask for updates.
  • Prioritize your weeks – big boulders and small rocks – decide weekly how you will focus. A week is a good planning time frame.
  • Identify and come to grips with your situation – the brutal facts – this will help you to prioritize.
  • Set boundaries based on time, relationships, priority – have realistic expectations of what you can accomplish. Set others’ expectations on when you will respond to their calls, emails, etc.
  • Compartmentalize your time for full concentration and focus. Focus on one thing at a time instead of multi-tasking.
  • Eliminate non-value added “stuff.”
  • Avoid letting others impose their schedules onto yours.
  • Use exercise time to refresh your endorphins, clear your head and give you time to reflect on priorities.

How Do You Structure an International Deal? Six Points

Situation: A CEO is evaluating a potential deal with an Asian company that is synergistic with the strategy of the CEO’s company. The structure would include a US entity, run by the CEO, and an Asian entity that would provide essential technology. How do you structure an international deal?

Advice from the CEOs:

  • Before you agree to a deal, raise your own level of trust with the key players of the Asian company so that you are comfortable with the investment of time and money that you will make.
  • Assure that you will have the focus and attention of talent that you will need within the Asian company. This is better done through mutual understanding and agreement than through contract. In Asia, relationships are personal, not contractual, though for legal reasons personal understandings must be backed by a good written contract. This will likely mean that you will have to travel to Asia to spend time with the key personnel upon whom you will rely.
  • Make sure that there is agreement on a clear road map for both the US and Asian entities.
  • You will need a solid bridge person who can speak both the language and culture of your Asian counterpart – not just someone who says that they can, but who can deliver. Test this relationship before agreeing to the deal.
  • Structure the deal so that the US entity owns exclusive rights to the technology world-wide with the exception of the home country of the Asian firm. Assure that you own an acceptable piece of the US entity.
  • Don’t complicate the exercise by creating additional shell companies in Asia. Shell companies can make it difficult to maintain accountability and assure that you gain the value that you seek.

Is It Wrong to Hire Family Members? Six Considerations

Situation: A small but very profitable business was founded and has been run for two generations as a family-owned and operated business. To boost performance, the CEO hired a general manager with a good background who is not a family member. The general manager has told the CEO that he feels that there are too many family members in the business. The CEO likes hiring people she trusts, particularly friends and family that she has known for a long time. Is it wrong to hire family members?

Advice from the CEOs:

  • Don’t try to change what you’ve already done – plan for the future.
  • Acknowledge the GM’s idea. Tell him that you appreciate his suggestions. Suggest that he test hiring more non-family members to cover one of your low risk market segments. Measure the performance of this team versus the other teams within the business.
  • The challenge with family members is accountability and objectivity. The question for the family owners is whether they have the freedom to act in the interests of the company. Can they put family ties aside when someone is not serving the interests of the company?
  • The essential question for the family that owns the business is – what do you want to maximize? If it’s loyalty and longevity – keeping the family together, employed and in harmony – they can be good. If it’s profits and performance – family and friends can be difficult if emotional ties cloud business objectivity.
  • The upside to family is loyalty and trust. That said, family and extended family friends are different. The latter don’t have the same ties or sense of loyalty.
  • Can you keep employees for too long? Yes. Make sure that you evaluate all employees every year. Establish job and performance standards and make sure that all employees – family and non-family – are held to the same performance expectations.

How Do You Work with an International BD Person? Seven Ideas

Situation: A company has been approached by an international business development specialist who wants to help them expand into Asian markets. The company would need to hire local resources to support business that was generated. Most of this would be cookie cutter as opposed to creative work. How do you work with an international business development person?

Advice from the CEOs:

  • Research the country markets where the specialist can help you and focus on the more developed and promising markets first.
  • If the specialist that has approached you has a local presence in the markets in which you are interested, lean on this person for help getting you started – office space, staff support, and so on.
  • One company started a subsidiary in Canada. The CEO believes that you must have a highly trusted person to own the project. Success is all about the relationship with this individual and their knowledge of both local and American culture.
  • Another company hired very promising business development person for a large Asian market. As the relationship progressed, they found that this individual was double dipping – working for them and their competition at the same time. Apparently this is acceptable in that culture.
  • Many cultures are relationship based. Local contracts are critical. Does your specialist possess these, and are they premier companies or also-rans.
  • Talk to individuals in your industry who have experience in the region.
  • Have your eyes open and recognize that this is will not be a quick process.

How Can a Lawyer Help You Meet Your Goals? Five Ways

A small company has need for legal advice, but is unsure how to properly utilize a lawyer. Legal costs have gone up over the last decade, so expense is one concern. Another is a desire to understand how to form an effective relationship with a lawyer or law firm, and how to effectively manage billable hours. Bottom line, how can a lawyer help you meet your business goals?

Advice from the CEOs:

  • First, seek the counsel of a firm that specializes in small businesses. Just as you would seek a specialist physician to treat a serious medical condition, SMBs are best served by corporate lawyers who understand how they are different from large corporations and who can advise them at a rate and under an arrangement that fits their financial situation.
  • Schedule regular “off the clock” lunches and conversations with your lawyer. The ideal lawyer for smaller companies serves as an “outside counsel.” Your outside counsel is essentially your legal quarterback and should be willing to meet with you off the clock to discuss general business needs. Of course, as a courtesy to your lawyer, if your conversation starts getting into areas where you are receiving legal advice you shouldn’t expect free advice.
  • Know what to ask your lawyer versus what to ask your auditor and tax specialist. Each has a separate and distinct domain.
  • Trust your lawyer – or find a new lawyer. The best legal relationship is when your lawyer is treated as a member of your team. Sharing the business context aids your lawyer in advising you.
  • There is no need to overspend on lawyers, but you do need to assure that you spend for what you need. A good relationship with your lawyer can help you to walk the line where you are spending appropriately.
  • Special thanks to Deb Ludwig of DJL Corporate Law for her contribution to this discussion.

How Does Social Media Aid Sales Efforts? Three Factors

Interview with John Lima, CEO, Coffee Bean Technology

Situation: As with anything new, there are varying adoption rates for social media. Many top executives aren’t sure  how social media can improve their sales. How can social media effectively enhance sale efforts?

Advice from John Lima:

  • Business is about people, and people are increasingly using social media to connect with others and to express themselves. Social media platforms encourage us to be ourselves – to take off the business mask that we normally present to the world. This enables the savvy company to better know their customers.
  • First, social media enable you to find customers more quickly. Almost everyone is somehow connected to social media. The problem is the inefficiency of searching for them through LinkedIn, Facebook Twitter, etc. Software-assisted search makes this more efficient. Develop a customer Social ID: a profile of what you believe your customers interests and buying behavior to be to serve as your social media connector.
  • Second, find people who fit this profile and engage with them in social media. Let them bring their conversations and interest to you, and refine your Social ID as you gain additional information. This gives you insight into the person – who they interact with and what interests them – and enables you to approach them as a human being. Envision an open marketplace where people connect first and then tell their stories. This allows salespeople to quickly build empathy and smooths the sales process.
  • Third, your evolving customer Social ID can help generate new leads. As the Social ID becomes more sophisticated you can develop key words to find similar customers. Software robots use these key words to find relevant conversations in Twitter or Facebook and flag then for a sales person who can then dig deeper to determine whether the individual identified is a competitor or a prospect.
  • To make this work efficiently, you want to have an integrated system with a set of tools that allows you to cost-effectively sift through the millions of daily entries logged through social media.

You can contact John Lima at john.lima@coffeebeantech.com

Key Words:  Sales, Marketing, Technology, Social Media, People, Mask, Customer, Connect, LinkedIn, Facebook, Twitter, Software, Social ID, Follow, Profile, Empathy, Relationship, Trust, Leads, System